I’ve always been one of those paying cash for every HIFI product I get and every upgrade has been well invested. If one purchase a car with a bank loan at say 40 000 EUR no one think of that as madness but if you would take the same bank loan for say a 252, NDX2 and a 300DR it would feel bit wrong even though both would loose half its value some years later. Interested to hear how you deal with this in terms HIFI/Cash/bank loan when this is your major interest in life.
For me it’s simple, and no different to any other purchase. I have a job, I earn money. When I have enough money I buy what I need or want.
Obviously I had to make an exception when buying a house, and got a mortgage.
The past few upgrades I’ve paid cash but prior to that my dealer always allowed me to pay it off in instalments with no interest. Don’t think I’d have what I have now without his trust and support.
Luxuries (including Hifi and cars) are not purchased in this household unless bank transfer for the full amount can be done or the MasterCard bill can be paid off in full when it hits the doormat.
Can’t see that changing, even though I really really want my 252 Of course Interest Free credit is intriguing, but we generally don’t use that unless we already have full funds in the bank either. “Better in our account than theirs” is the mantra here.
I wouldn’t take a loan out for Hifi. It’s not one of life’s essentials although I know it can feel like that to us!
I’ve mainly bought used and sometimes from respectable dealers on eBay. When I’ve done this I have used PayPal credit which gives 4 months interest free credit.
This period has generally given time to sell the old unit being replaced and accumulate the balance over a short period of time through earnings.
Future upgrades would require 500 series components which would test this approach somewhat!
It depends on circumstances - I did a bank loan - and given the low interest rates available and low inflation up until 2022 I think I did the right thing
Like Chris, the only thing I’ve ever borrowed money for is our house, and even all the upgrades to that have only been when cash is available. Debt is like leaving a testicle in the bank managers safe.
Broadly - yes. Not literally Cash - via Cheque or Debit Card. Have used Credit Card (which I always pay off) in the past, but not recently.
Same here. No loans or credit for unimportant luxury stuff like hifi.
My dad learned me a simple rule at a very young age. Don’t spend money you don’t have.
A house/mortgage is an obvious exception. A very unforeseen situation might make a loan necessary if that exceeds the normal financial buffer I try to keep. But till today I never had to do that (knock on wood).
HiFi, TV, car, domestic, anything, I have the funds so I only use Bank Transfer, Debit or Credit Card.
I’ve listened to sales people almost pleading with me to go with a finance deal, seems obvious they get separate commission on the finance, however discounts coupled to finance deals don’t seem to balance.
One of the few benefits of getting old is that we may get less poor, and so need credit less or not at all.
In any event, if you buy most hi-fi from eBay, credit may not be the obvious route.
Always used to be cash, but lately, I have found some 0% cashback type details, for sub >£3,000 purchases.
I guess it is like cars, the days are gone of cash (pay in one go), either credit (dealer get commission and you get a kick back) or lease.
I have talked before about Hifi Leasing models as a concept, but so far not seen any dealer or OEM offering this.
I got a loan at 2020 rates. Could have paid in cash but I expect more earnings from shares than the interest rate, so is gifted money, and basically no risk, either.
(And in unusual foresight, before Brexit and Naim’s increases. I feel to have done everything right)
The company I’m product managing is actually releasing our hw product with leasing option similar to leasing a car (Hardware as a service / HAAS).
Fair point, but this comes down to apply gearing to an equity-based portfolio. I definitely don’t disagree with you, but that is probably not a debate that needs to be on a hi-fi forum.
I’m not just invested in the stock market
Sure, there’s a bit of gamble and the market hasn’t been great since (though I haven’t made losses, either), but I could sell stocks at any time if I think it gets hairy, and pay off the loan without any additional fees, so …
It’s the way of the world sadly. I won’t do subscription models for “products”. But that’s another thread entirely and that’s come up a few times.
Yes, I pay for everything up front in full. No financing. Only exception is a mortgage. And I even budget property purchases where I think I can clear a mortgage in just 10 years. I could easily do financing and get a Statement or something but it’s not in my DNA. Be happy with what you can afford. I once had a full Linn system. My circumstances changed. Most I could afford was a $350 Onkyo/Mission micro system - was happy.
i did the same and consolidated credit card on one low interest loan.
Car purchases were always strictly cash only, until I came to buy my current one.
The salesman at my local Audi dealership, from whom I had bought the previous two cars, knew I preferred to pay upfront, but convinced me to enter into a deal with Audi Finance, (yes, I know he would be collecting a commission on the HP agreement), but the clincher was that it would include a free annual service in 12 months time.
Even better, after a year and a day, I could pay off the existing balance, and Audi would then refund any interest paid.
Well, you would, wouldn’t you?
I’ve financed and taken loans out for hifi. The only trouble is it’s very addictive for me which is why I end up losing money in the long run. I end up accumulating more than I need and then I lose money when I purge the excess components.
Headphones have always been a big waste of time and money for me. I love the aesthetics and culture but honestly the sound is meh compared to a properly setup speaker rig.